You should try flashing it again with dream up, using some other image.
i using dream up but not working ,,only find this in windows
11:41:32 PM box type: DM500
and nothing ,,cannot open flash buton
Non-English part of the message removed and copied here:
http://www.sat-universe.com/showthread.php?t=49061
Linux/PPC load: console=null root=/dev/mtdblock5 rootfstype=squashfs ro
Uncompressing Linux...done.
Now booting the kernel
load: console=null root=/dev/mtdblock5 rootfstype=squashfs ro
Uncompressing Linux...done.
Now booting the kernel
Dreambox DM500
loaded at: 00500000 0060016C
relocated to: 00400000 00500
board data at: 004FE124 004FE16C
relocated to: 00405194 004051DC
zimage at: 004058D1 004FD8F9
avail ram: 00501000 02000000
to je sa hipo terminala
nemoze da nadje sebi boot ili kernel